The impact of fuel cost on the industry.
What you may not know.
Okay we all know fuel is going up to all new highs in the US right? Well we know that the biggest users of fuel is the truckers. Now that cost is passed down right, well not always.
Now we will say yesyour going to pay for the increase in everything you buy, use, or make. This is a promise that in at least one way the increase of fuel cost will impact you. Here is what is happening in the trucking industry and how it will have long term impacts on your life.
What happens when fuel or diesel goes up in the industry? Well to answer this look at how much fuel these kings of the road use. On an average most trucks hauling on the roads today are getting between 6 to 9 miles to the gallon. Yes that right it’s that low, and at times a lot worse. Now you can understand why these massive machines have anywhere from 2 to as many as 4 fuel tanks on their trucks. They will run between 200 gallons of fuel to as much as 300 gallons. That is an average, and they can burn that in as little as 1 to 2 days. So think of a $5.00 fuel cost and 300 gallons every two days.
So how are you paying for this again lets look at the truckers. The little guys or independents are fronting the fuel cost for the loads. That can lead to as much as $5000.00 a week for a single truck, and can lead to a lot of overhead expense. Most of these companies running several trucks are looking at very large bills for fuel alone. And set into contracts that do not allow for an increase to cover the cost. What happens then, well you guessed it the independent does one of two things. They join with larger companies, or they fold and quite business. The over head costs are massive and can break a company in a very short time. From the over the road driver to the local trucker it is all the same. Now the bigger companies are not going to fight for the contracts, and you ask why? Well its very simple they don’t have to, they wait when enough of the independents are gone they have an open playing field and not a lot of competition. They wait and set the price that still has them making money and you paying for it. They pass the bill to the shipper and receiver, and they pass it to you. These companies can pay as much as 3 million a week in fuel, but can afford to front the cost for fuel. They are the companies that order as many as 1000 new trucks a year. They lay and wait for these fuel cost to break the little guy. Then they win because they make the price pass to you, they keep making money and they set the industry price. Lucena to Clark Angeles
Now any person that thinks this is a good thing might want to think of a monopoly. That is what it is and what will happen. It’s not a matter of if it will happen its when. The government will not help unless you’re an immigrant and then they or we will pay for them to run. We pay them to lose our money on an industry that is set to break, but that is another article. So the little guy dies, cost increases, unemployment goes up, more trucks are taken off the road for a time and drivers are forced to find other work or work for the big companies. Where they are not passing the increase they will charge to the driver. They will lower wages for the drivers as the more of them are available to drive a company truck. So you see its going to be a lose, lose situation for everyone except the big company.
Now we have seen what happens when the drivers fight back in Europe by stopping the trucks on highways and to very little effect. Does it get your attention, or get you to support these warriors of the road, no way, you continue on your daily drive and life. But what would happen and how can these little guys fight back first off they can stop hauling while they are still able to survive.
How can they fight well think of this most stores get deliveries every day. The bigger the store the more they get brought in each day. So if its all stopped for say two days. What would happen would be chaos, and the government stepping in very fast. Industries would come to a screaming halt, and the US opening their eyes, and forcing the oil companies to think more about you and the trucker. Why would this happen well we have the oil here we have the wells already drilled, and we need to process them before we buy a drop of oil from the other nations of the world. That is right I don’t care about their country, I care about ours and believe that we should take care of us first.
So where will this leave us when the little guy falls the big companies take over. Your going to pay for a long time to come. The monopoly will happen and you and me will have to fight for a fair shipping rate.